An eleventh-hour deal achieved President Trump’s political aims, but Wall Street remains concerned that tariffs will become a permanent threat in negotiations.

The S&P 500 was down 0.6% in midday trading after Asian and European indexes logged worse drops. The Dow Jones Industrial Average was down 39 points, or 0.1%, as of 11:45 a.m. Eastern time, and the Nasdaq composite was 1% lower.

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world Donald Trump’s threats to hit the EU with tariffs have left the bloc’s leaders scrambling at the prospect of a trade war with the US.

U.S. President Donald Trump said on Tuesday (February 4) he is in no hurry to speak to Chinese President Xi Jinping to try to defuse a new trade war between the world's two largest economies sparked by his sweeping 10% tariffs on all Chinese imports.

The first volleys in the latest US-China trade war made clear that Xi Jinping is taking a more cautious approach than during Donald Trump’s first term.